Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
return on average assetsfinancial
Return on average assets (ROAA) measures how efficiently a company turns its assets into profit by comparing profit after expenses to the average value of its assets over a period (usually the average of beginning and ending assets). It matters to investors because it shows how well management uses the company’s resources to generate returns—think of it as how much profit a baker earns from the oven space they actually used over time.
return on average tangible common stockholders’ equityfinancial
A profitability measure that shows how much profit common shareholders earn, on average, from the company’s tangible equity — the shareholder money that remains after removing preferred shares and intangible items like goodwill and trademarks. Think of it as the interest rate the business pays investors on the real, physical portion of their investment; higher values mean the company is using shareholders’ tangible capital more efficiently, helping investors compare earnings power across firms.
efficiency ratiofinancial
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
non-performing loansfinancial
Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.
loans held for investmentfinancial
Loans held for investment are loans a bank or lender plans to keep on its balance sheet and collect payments from, rather than sell to another party. Think of it like owning a rental property instead of flipping it: the owner expects steady income but also carries the risk that borrowers may stop paying, so investors watch this line to judge a lender’s interest income stability, credit quality, and liquidity needs.
cash & cash equivalentsfinancial
Cash & cash equivalents are a company’s money that’s immediately available or can be turned into cash within a very short time, including physical cash, checking balances and ultra-short-term investments like Treasury bills or money-market funds. For investors, this figure shows how easily a business can pay bills, fund operations or seize opportunities—too little raises short-term risk, while too much may suggest idle capital that could otherwise be invested for growth.
cet1 ratiofinancial
CET1 ratio measures a bank's core equity capital (the most loss-absorbing funds like common stock and retained earnings) relative to the size of its risk-adjusted assets. It shows how big the bank's financial cushion is compared with what it has on its books; a higher ratio means greater ability to absorb losses, lower regulatory risk, and generally more investor confidence in the bank's stability.
SAN JUAN, Puerto Rico--(BUSINESS WIRE)--
OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the fourth quarter and year ended December 31, 2025.
4Q25: EPS diluted of $1.27 compared to $1.16 in 3Q25 and $1.09 in 4Q24. Total core revenues of $185.4 million compared to $184.0 million in 3Q25 and $181.9 million in 4Q24.
Full Year 2025: EPS diluted of $4.58 compared to $4.23 in 2024. Total core revenues of $729.8 million compared to $709.6 million in 2024.
CEO Comment
José Rafael Fernández, Chief Executive Officer, said: “Fourth quarter EPS increased 16.4% year-over-year on 1.9% growth in total core revenues, driven by disciplined core operations and a favorable tax benefit. For full year 2025, EPS grew 8.3% on a 2.8% increase in total core revenues, reflecting continued operating momentum and solid underlying performance.”
“Asset quality and credit metrics remained sound and well-controlled throughout the year. We repurchased $40.1 million of common shares in 4Q25 and $91.6 million for the year, reinforcing our commitment to disciplined capital deployment and shareholder returns.”
“During the quarter and year, in line with our strategies, we saw increased commercial loans and broad acceptance of our flagship mass-market Libre and mass affluent Elite deposit accounts. By year end, we grew our client base 4.26% and our Digital First strategy continued to solidify our leadership in banking innovation in Puerto Rico.”
“The island’s economy also continued to perform well, supported by infrastructure investments with federal and private funds and new multi-million dollar on-shoring projects, reinforcing Puerto Rico’s position as a global hub for medical devices and pharmaceutical manufacturing. These developments underpin our confidence in sustained economic activity and long-term growth across our core businesses.”
4Q25 Highlights
Performance Metrics: Net interest margin of 5.12%, return on average assets of 1.81%, return on average tangible common stockholders’ equity of 17.20%, and efficiency ratio of 56.65%.
Total Interest Income of $197.2 million compared to $200.1 million in 3Q25 and $190.2 million in 4Q24. Compared to 3Q25, 4Q25 decreased $2.9 million, reflecting higher average balances of loans and cash at lower average yields, partially offset by higher average balances of investment securities at slightly higher yields.
Total Interest Expense of $44.5 million compared to $45.4 million in 3Q25 and $41.0 million in 4Q24. Compared to 3Q25, 4Q25 decreased $0.9 million, reflecting higher average balances of deposits and borrowings at lower average rates.
Total Banking & Financial Service Revenues of $32.6 million compared to $29.3 million in 3Q25 and $32.8 million in 4Q24. Compared to 3Q25, 4Q25 primarily reflected increased wealth management revenues due to $2.3 million in annual insurance commission recognition.
Pre-Provision Net Revenues of $79.3 million compared to $89.6 million in 3Q25 and $83.0 million in 4Q24.
Other Income reflected a loss of $1.1 million compared to a profit of $2.2 million in 3Q25. 4Q25 included $6.1 million accelerated amortization of technology related assets and gains of $3.9 million on the sale of non-performing loans and $1.1 million on the sale of a building. 3Q25 included $2.2 million in gains from OFG Ventures investments in fintech focused funds.
Total Provision for Credit Losses of $31.9 million compared to $28.3 million in 3Q25 and $30.2 million in 4Q24. 4Q25 primarily reflected $21.8 million for increased loan volume, $5.1 million for a specific reserve on a Puerto Rico telecommunications commercial loan, $2.4 million related to U.S. macroeconomic factors, and $1.7 million in charge-offs from the non-performing loans sale.
Credit Quality: Net charge-offs of $26.9 million (1.32% of average loans) compared to $20.2 million (1.00%) in 3Q25 and $15.9 million (0.82%) in 4Q24. NCOs included $4.8 million from the non-performing loans sale, of which $3.1 million had been previously reserved. 4Q25 early delinquency rate was 2.80%, down from 3Q25 and 4Q24, and total delinquency rate was 4.18%, up from 3Q25 but down from 4Q24. The nonperforming loan rate was 1.59% compared to 1.22% in 3Q25 and 1.06% in 4Q24.
Total Non-Interest Expense of $105.0 million compared to $96.5 million in 3Q25 and $99.7 million in 4Q24. 4Q25 included expenses of $3.3 million in professional service fees related to performance-based advisory costs as part of the renegotiation of a cost-saving technology services contract, $2.5 million for business rightsizing, and $1.0 million related to the previously mentioned accelerated amortization of technology related assets. Compared to 3Q25, costs for additional accumulation for performance bonuses, expanded marketing activities, and the sale of foreclosed assets increased $1.7 million.
Income Tax was a benefit of $8.5 million compared to an expense of $9.5 million in 3Q25 and $2.4 million in 4Q24. 4Q25 benefited from $16.8 million in discrete tax benefits, including $12.9 million from the expiration of a tax agreement from the 2019 acquisition of Scotiabank’s PR and USVI operations, and $3.9 million from a release in valuation allowance of deferred tax assets at the holding company level. Excluding discrete benefits, 2025’s estimated tax rate was 21.8%.
Loans Held for Investment (EOP) of $8.20 billion compared to $8.12 billion in 3Q25 and $7.79 billion in 4Q24. 4Q25 loans increased $83.8 million or 1.0% sequentially, reflecting increases in Puerto Rico commercial loans, partially offset by lower balances in auto and residential mortgage. Loans increased $409.1 million or 5.25% year-over-year, reflecting increases in commercial, consumer, and auto loans, partially offset by a decrease in residential mortgage.
New Loan Production of $605.6 million compared to $623.9 million in 3Q25 and $609.0 million in 4Q24. Compared to 3Q25, 4Q25 reflected decreases in Puerto Rico and U.S. commercial and consumer lending, partially offset by increases in auto and residential mortgage lending. Year-over-year new loan production increased $265.3 million or 11.5% to a record $2.57 billion.
Total Investments (EOP) of $2.84 billion compared to $2.94 billion in 3Q25 and $2.72 billion in 4Q24. Compared to 3Q25, 4Q25 reflected principal paydowns and maturities, partially offset by purchases of $25.0 million of mortgage-backed securities and residential mortgage securitizations of $21.1 million.
Customer Deposits (EOP) of $9.92 billion compared to $9.82 billion in 3Q25 and $9.45 billion in 4Q24. Deposits increased $103.2 million or 1.1% sequentially and $474.0 million or 5.0% year over year, both periods reflecting higher demand, time and savings deposit balances.
Total Borrowings & Brokered Deposits (EOP) of $897.3 million compared to $746.4 million in 3Q25 and $557.2 million in 4Q24. Compared to 3Q25, 4Q25 reflected increased brokered deposits, mainly for liquidity management.
Cash & Cash Equivalents (EOP) of $1.04 billion compared to $740.3 million in 3Q25 and $591.1 million in 4Q24. Compared to 3Q25, 4Q25 cash reflected increased deposits.
Capital: CET1 ratio was 13.97% compared to 14.13% in 3Q25 and 14.26% in 4Q24. Tangible Common Equity ratio was 10.47% compared to 10.55% in 3Q25 and 10.13% in 4Q24. Tangible Book Value per share was $29.96 compared to $28.92 in 3Q25 and $25.43 in 4Q24.
A conference call to discuss 4Q25 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 579-2543 or (785) 424-1789. Conference ID: OFGQ425. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter. OFG’s Financial Supplement, with full financial tables for the quarter ended December 31, 2025, and the 4Q25 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain “non-GAAP financial measures” within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.
Forward Looking Statements
The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, pandemics, and other natural disasters; and (iv) competition in the financial services industry. For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2024, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
About OFG Bancorp
Now in its 62nd year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Our mission is to make progress possible for our customers, employees, shareholders, and the communities we serve. Visit us at www.ofgbancorp.com.
